Vote by agency on tax breaks expected
The Ulster County Industrial Development Agency is slated to decide on the $26.15 million package sought by developers
KINGSTON, N.Y. » Ulster County Industrial Development Agency officials are expected to vote Wednesday, Jan. 20, on $26.15 million in tax breaks for developers of the planned $54.89 million Kingstonian mixed-use retail and residential project.
The session is scheduled for 9 a.m. during a video conference board meeting, with the link available on agency website, ulstercountyida.com.
Under the proposed 25-year payment-in-lieu of tax agreement, the school district would get $2.7 million in revenue while the developers — Kingstonian Development LLC and Herzog Supply Co. — would get a $17.49 million tax break; the city of Kingston would receive $1.17 million in revenue and the developers would get an $8.46 million tax break; and Ulster County would see $328,733 in revenue and the developers would get a $2.26 million tax break.
The proposed tax agreement also calls for the developers to receive sales and use tax exemptions of $1.48 million and $325,575, respectively, in waived mortgage recording tax.
The developers plan to use the existing Herzog-owned property on the east side of Fair Street and the city-owned vacant lot on the west side to construct a complex that has 129 market-rate apartments, 14 affordable housing units, and 9,000 square feet of retail space. The plan includes 420 parking slots, of which 277 slots would be for public use.
The project was announced in 2017 and became polarizing after the developers submitted an
application for tax breaks, which they contend would not be needed if they were not building the parking garage. The developers have been approved for grants of $2 million from the Empire State Development Corporation and $1 million from the state Restore New York program in conjunction with Kingston’s efforts to increase parking in the Uptown business district.
While the agency has a policy that asks for support from each taxing agency affected by the agreement, only the city of Kingston and Ulster County have endorsed the tax breaks. Kingston school board members on Thursday, Dec. 3, voted 6-3 in opposition. The vote drew vehement rebukes from the developers, who contend they were treated unfairly by being denied further opportunities to present their project.
In public statements, the developers have singled out school board President
James Shaughnessy by encouraging residents to vote later this year during school district elections that will have Shaughnessy’s seat on the ballot.
“He has been a vocal opponent of this project from the onset and recently has seemingly made it personal,” the developers wrote. “He has publicly spoken out against it on numerous occasions despite the fact he knew he would be charged with impartially reviewing specific aspects of it at a later date. Ultimately, the public will have
the opportunity to weigh in on this in May.”
Outside of the immediate taxing districts, there have been calls for the agency to recognize that there will be effects on municipalities countywide. New Paltz village officials on Wednesday, Jan. 13, renewed their concerns about the reduction in county property taxes that will be spread among other property owners and the elimination of sales taxes at a time when revenue is already falling due to the economic decline caused by the COVID-19 pandemic. They
said that tax breaks given to the Kingstonian could set a precedent for an even larger project proposed in the village.
“I understand that this tool exists to provide tax abatements by an IDA process but I think it’s really irresponsible not to look at things holistically,” village Mayor Tim Rogers said. “I’m largely supportive of all the boxes that they’re looking to check with the Kingstonian. I just need (a) tax policy that makes sense, that’s defensible, where we’re not expecting local
property taxpayers (to) pay even more just so we can pad developers’ profit margins.”